Posted on: 09th Apr, 2009 11:44 am
We bought a house about a year and a half ago for our son and daughter-in-law and we rent it to them. We are paying 6.65% interest and would like to take advantage of the lower interest rates that are out there now. Is there a difference in the rate we may be able to get because it is considered a rental property or is it the same as refinancing the conventional way?
You will have an adjustment for the property being an investment.
Does that mean we wont get as good of a rate?
Yes, the Investment property adjustment will cause the Interest Rate to go up a bit. What state is the property located in?
Tennessee...we were told it would only go down 1% to 5.65%
That sounds accurate. You are not going to receive the rates in the 4's on an Investment.
you can get lower rates, but the costs involved in doing so will be prohibitive. taking the rate down to 5% or even 5.(something) won't be a bad idea, especially since you've only had the loan for 18 months, as you said.
We have a rental in Sacramento Ca with an interest rate of 6.25, is there anyway to get a lower interest rate?
You will need atleast 20% equity in your investment property to even entertain the idea of refinancing.
My property is in TX and is currently at 7.37(yuk) principal bal is around 61,000.00 and its worth around 85,000. Would it be wise to refi? What are current rates? Thanks for any info
Welcome Jules,
Do you have equity in your property? If you have equity in your property, then you'll be able to refinance the mortgage. As far as the rates are concerned, 30 yr fixed rate mortgage is available at 4.87% approximately whereas 15 yr fixed rate mortgage is available at 4.16% approximately. However, these rates keep in changing on a daily basis.
Do you have equity in your property? If you have equity in your property, then you'll be able to refinance the mortgage. As far as the rates are concerned, 30 yr fixed rate mortgage is available at 4.87% approximately whereas 15 yr fixed rate mortgage is available at 4.16% approximately. However, these rates keep in changing on a daily basis.
you should be able to get a better rate at 75% Loan to value. I do think you need 12 months or more of ownership to validate the value.